LABOR FORCE PARTICIPATION RATE FALLS TO LOWEST LEVEL SINCE 1978http://www.businessinsider.com/lfpr-falls-to-lowest-level-since-1978-2014-5/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Tue, 31 Mar 2015 17:14:22 -0400Sam Rohttp://www.businessinsider.com/c/5367baa26bb3f7d43c16ebc5philalethtesMon, 05 May 2014 12:21:54 -0400http://www.businessinsider.com/c/5367baa26bb3f7d43c16ebc5
Not to be a spoilsport, but do you happen to know how"many people" stopped doing productive work in 1927-1929 to enjoy themselves gambllng in the stock market? Since the majority of speculators were already coupon clippers, I would guess several thousand ordinary Americans quit their jobs on stock market profits out in the boonies, if that, That's a very misleading statement, and the problem in 2008 was not that people quit their jobs to watch their houses rise in price either, it was that they lost their jjobs as the economy tanked due do dishonesty and financial shenanigans by--the 1%! Just like 1929.http://www.businessinsider.com/c/53679f3aecad04507dc44728GJPinksMon, 05 May 2014 10:24:58 -0400http://www.businessinsider.com/c/53679f3aecad04507dc44728
You paid taxes on the money before you invested it.
Return is after taxes are paid.
Increase in value ignores inflation.
If you're living off assets, you're likely a 2nd or 3rd gen rich kid (Democrat) or you worked really hard, smart and lucky or smart enough to cash out before things crashed.
This is what you get with over 100 years of progressive, punish the achievers, convince the educators that you only get ahead by being evil, a slowly increasing percentage of the people unable to find a rewarding job or career.
This is the "HOPE" Obama was hoping and changing for.http://www.businessinsider.com/c/5363e6bdeab8ead422793ca7peter thomFri, 02 May 2014 14:41:01 -0400http://www.businessinsider.com/c/5363e6bdeab8ead422793ca7
This is the sort of nonsense parlayed about by those who are math challenged in the face of drastically changing demographics. The fact that a larger percentage of those over 55 and 65, much larger cohorts, continue to work is more than balanced by the fact that about 10,000 in the over 65 cohort retire each day. Because this cohort is such a large percentage of the population it has had an outsize effect on the LFPR. The two youngest cohorts, 16-19 and 20-24, are much smaller segments of the overall population. And, for whatever reason, they have trended toward continuing their education. Summer school enrollment has increased substantially for high school students and college enrollments continue to rise. For a study that puts this into perspective see here...
<a href="http://philadelphiafed.org/research-and-data/publications/research-rap/2013/on-the-causes-of-declines-in-the-labor-force-participation-rate.pdf" target="_blank" rel="nofollow" >http://philadelphiafed.org/research-and-data/publications/research-rap/2013/on-the-causes-of-declines-in-the-labor-force-participation-rate.pdf</a>http://www.businessinsider.com/c/5363e2fa69bedd646a56ff2cpeter thomFri, 02 May 2014 14:24:58 -0400http://www.businessinsider.com/c/5363e2fa69bedd646a56ff2c
The claim here that the current low LFPR means the unemployment rate is understated is wrong. The Fed has done a couple of studies about the correlation between these two datasets and its most recent study concluded that "...the decline in the participation rate in the past one-and-a-half years (when the unemployment rate declined faster than expected) is mostly due to retirement." The second largest factor leading to a lower LFPR cited in this article is "nonparticipation due to enrollment in schools...". This is reflected in the decking participation rates in the 16-19 and 20-24 year old cohorts.
But what is not factored in this analysis is the very large size of the baby boom generation as a percentage of the overall population relative to other cohorts. So while it's a fact that increasing numbers of the over 65 cohort continues to work, the number of retirees in that cohort, about 10,000 per day, accounts for almost all of the decline in the overall LFPR. I look upon the quasi-conspiracy theory, that there is this vast number of people who've simply given up looking for work, as a product of math challenged people who don;t understand changing demographics.
<a href="http://philadelphiafed.org/research-and-data/publications/research-rap/2013/on-the-causes-of-declines-in-the-labor-force-participation-rate.pdf" target="_blank" rel="nofollow" >http://philadelphiafed.org/research-and-data/publications/research-rap/2013/on-the-causes-of-declines-in-the-labor-force-participation-rate.pdf</a>http://www.businessinsider.com/c/5363d96f6bb3f787564453f9LOLFri, 02 May 2014 13:44:15 -0400http://www.businessinsider.com/c/5363d96f6bb3f787564453f9
Source?http://www.businessinsider.com/c/5363b7d6ecad04a5654453faJohn Love PousséFri, 02 May 2014 11:20:54 -0400http://www.businessinsider.com/c/5363b7d6ecad04a5654453fa
Here's an idea: cap the number of hours that employees can work for a single employer to 30 hours (or at least make it more expensive for every marginal hour above 30). This will force employers to make employees more efficient or to hire more people. No more lawyers, accountants, financiers, software programmers, and other corporate sycophants working 60, 80, 100+ hours a week unless they have multiple jobs. But this might put the balance of power back into labor's hands and politicians cannot stand for hurting their capital class friends.http://www.businessinsider.com/c/5363b46669beddca780e78f0OMGFri, 02 May 2014 11:06:14 -0400http://www.businessinsider.com/c/5363b46669beddca780e78f0
I don't think you understand how the unemployment rate is calculated. The rate is the percentage of people *in the workforce* that don't have jobs. You have to be looking to be counted as unemployed.http://www.businessinsider.com/c/5363b41e6bb3f77b504453f7OMGFri, 02 May 2014 11:05:02 -0400http://www.businessinsider.com/c/5363b41e6bb3f77b504453f7
Think there is any difference in the slope of the curve in the last several years compared to where it was in the early to mid part of the last decade? Also the range was the same since the late 80s until the last several years but keep telling yourself that the current policies in place have nothing to do with people leaving the work force (because they disincentives people to work) and there will be no negative repercussions as we result. It's all Wall Streets fault... blah blah blah.http://www.businessinsider.com/c/5363b005ecad0446444453f7Epic WinnerFri, 02 May 2014 10:47:33 -0400http://www.businessinsider.com/c/5363b005ecad0446444453f7
Working is for chumps anyway. The real money is in being born rich, or in swindling people with credit default swaps, collateralized debt obligations, and repackaged mortgages.http://www.businessinsider.com/c/5363acf6eab8ead34e5b9501Snake PlisskenFri, 02 May 2014 10:34:30 -0400http://www.businessinsider.com/c/5363acf6eab8ead34e5b9501
We should build a 50 foot tall wall around Detroit and imprison all the unemployed. Let them fight it out. Live pay per view video feeds would support the food drops.http://www.businessinsider.com/c/5363acbaeab8ea29495b9505Meaningless NumbersFri, 02 May 2014 10:33:30 -0400http://www.businessinsider.com/c/5363acbaeab8ea29495b9505
How is it that the UNemployment rate and the EMPLOYMENT rate are decreasing together?http://www.businessinsider.com/c/5363acb869bedd7e4f0e78e6ssdFri, 02 May 2014 10:33:28 -0400http://www.businessinsider.com/c/5363acb869bedd7e4f0e78e6
They live with family. Senior citizens go live with their adult children or vice versa. Husband not working, wife still has her job or vice versa. Teens live with their parents, older children move back home, double up to save expenses. Despite what is conventionally believed, it is extremely hard to qualify for food stamps as they look at family size, composition of family, income, and resources. The overwhelming majority do what they have to do to survive, and they don't rely upon the government to provide for them, despite what the vast right wing liars would have you believe. They won't be happy until starvation, child labor and work houses come back into style.http://www.businessinsider.com/c/5363abfb69bedd604d0e78e8AlexandraFri, 02 May 2014 10:30:19 -0400http://www.businessinsider.com/c/5363abfb69bedd604d0e78e8
It's been declining since 2001 buddy.http://www.businessinsider.com/c/5363abe8eab8ea4b4b5b94ffAlexandraFri, 02 May 2014 10:30:00 -0400http://www.businessinsider.com/c/5363abe8eab8ea4b4b5b94ff
We should make the 300,000+ baby boomers retiring each month work 4ever!http://www.businessinsider.com/c/5363aad4ecad04222a4453f7sabrina sFri, 02 May 2014 10:25:24 -0400http://www.businessinsider.com/c/5363aad4ecad04222a4453f7
This trend actually started during the Bush years, but blaming Democrats or Republicans is besides the point. This particular trend is thanks to Wall Street, who owns both parties.http://www.businessinsider.com/c/5363aa90eab8ea99425b9500replyFri, 02 May 2014 10:24:16 -0400http://www.businessinsider.com/c/5363aa90eab8ea99425b9500
In the unemployment rate they count ONLY the people collecting unemployment benefits. When the benefits expire, they appear in the labor force participation rate which is closer to the true unemployment rate.http://www.businessinsider.com/c/5363aa126bb3f7db254453fcsagebrushFri, 02 May 2014 10:22:10 -0400http://www.businessinsider.com/c/5363aa126bb3f7db254453fc
The actual unemployment number is 37%.http://www.businessinsider.com/c/5363a95269bedd28440e78e9ssdFri, 02 May 2014 10:18:58 -0400http://www.businessinsider.com/c/5363a95269bedd28440e78e9
The shadow work force (those working off the books) is huge and if it were included would show a gigantic uptick. Construction workers, restaurant workers, child care workers, cleaning people, lawn maintainance workers, the list is endless. The cash economy is huge. I remodeled my house and more than half of the people working were asking to be paid only in cash. And I am referring to American citizens. Who knows how many illegals are working for cash, living here, supporting families and never counted? The unemployment rate does not accurately reflect a huge portion of the cash workers.http://www.businessinsider.com/c/5363a58becad04090a4453fbi'm not a rocket scientistFri, 02 May 2014 10:02:51 -0400http://www.businessinsider.com/c/5363a58becad04090a4453fb
expensive child care + high gas prices (+ high car ownership costs generally) + most job openings are low wage >>>>>
two-income households becoming one, or older peeps choosing part-time/early retirement over working, or students staying school longer, or people working under the table, or people choosing to "work" for as caregivingers for their elderly parents instead of expensive nursing homes.http://www.businessinsider.com/c/5363a3eb69beddef290e78ecMikentFri, 02 May 2014 09:55:55 -0400http://www.businessinsider.com/c/5363a3eb69beddef290e78ec
And gambling in the financial and real estate markets and living off your income from assets is even sweeter when you realize that your tax rate capped at 15% is a hell of a lot lower than the tax you'd pay if, say, you had a real job .http://www.businessinsider.com/c/5363a25eeab8ea03285b9509patrick kFri, 02 May 2014 09:49:18 -0400http://www.businessinsider.com/c/5363a25eeab8ea03285b9509
Wake me up if the rate drops below 1960 levels. Until then this is just hysterics by folks grasping for headlines. That is not the to say the job market in all its complexity doesn't suck but it is to simply point out that most pundits haven't a clue. What will be certain however should we drop below 1960 levels that there are definitely weird things happening. Until then chill out.http://www.businessinsider.com/c/5363a259ecad04c47d4453f7depressionFri, 02 May 2014 09:49:13 -0400http://www.businessinsider.com/c/5363a259ecad04c47d4453f7
Agree completely, whole heartedly, 100%, about people living off rent not doing productive work.http://www.businessinsider.com/c/5363a23beab8eafa275b9506MikentFri, 02 May 2014 09:48:43 -0400http://www.businessinsider.com/c/5363a23beab8eafa275b9506
Don't knock Medicaid and Obamacare - that 3.0 GDP report would have been 0.1 without them !http://www.businessinsider.com/c/5363a08becad04f26d4453faBatmanFri, 02 May 2014 09:41:31 -0400http://www.businessinsider.com/c/5363a08becad04f26d4453fa
It's not a problem. We'll just print more money to keep paying for more JP Morgan SNAP (food stamp) cards, Obamaphones (from Mexican mega billionaire, indirectly an Obama super-donor, Carlos Slim) and more Medicaid. Problem solved!!!http://www.businessinsider.com/c/53639ff269bedda1060e78fcNick1Fri, 02 May 2014 09:38:58 -0400http://www.businessinsider.com/c/53639ff269bedda1060e78fc
Inflation of asset prices by the Fed reduces people's need for doing productive work.
If people can make money from financial shenanigans, such as High Frequency Trading or simply borrowing a lot of money and investing in the stock market, then why would they want to risk their money on creating new businesses that quite often fail?
And the Fed inflating house prices and rent prices allows property owners to live off rent, instead of doing something productive.
Gambling in the financial markets and living off rent, instead of doing productive work, is what you get when the Fed inflates asset prices by printing money and buying assets with it.
There was a decline in economic activity like this too in 1929, which eventually led to the stock market crash. Many people stopped doing productive work and started gambling in the stock market instead.http://www.businessinsider.com/c/53639fb9ecad049e6d44540cDuh2Fri, 02 May 2014 09:38:01 -0400http://www.businessinsider.com/c/53639fb9ecad049e6d44540c
Why work when it pushes you over the "benefits cliff"http://www.businessinsider.com/c/53639f8b6bb3f774054453f7save_the_rustbeltFri, 02 May 2014 09:37:15 -0400http://www.businessinsider.com/c/53639f8b6bb3f774054453f7
More like the job market left them.http://www.businessinsider.com/c/53639c366bb3f73c774453fcUnemployment RateFri, 02 May 2014 09:23:02 -0400http://www.businessinsider.com/c/53639c366bb3f73c774453fc
If we all quit our jobs and don't look for another one, the unemployment rate will be zero. Hurray!http://www.businessinsider.com/c/53639a4f69bedde86f0e78edzipperhadFri, 02 May 2014 09:14:55 -0400http://www.businessinsider.com/c/53639a4f69bedde86f0e78ed
people dropping out of the workforce eh? I guess that explains all the homeless on the street.http://www.businessinsider.com/c/536399d5eab8ea8d065b9503hcho3Fri, 02 May 2014 09:12:53 -0400http://www.businessinsider.com/c/536399d5eab8ea8d065b9503
Are these people all in food stamps? How are they living without jobs? Do they have that much savings? At this rate, the participation rate is going below 50 in few years. What good is this unemployment rate?http://www.businessinsider.com/c/536399d3ecad043a5a4453f7Your Report Is WrongFri, 02 May 2014 09:12:51 -0400http://www.businessinsider.com/c/536399d3ecad043a5a4453f7
You said, "reasons including an aging workforce consisting of retiring baby boomers."
However, the 65+ category is the ONLY one that went up and not down.
In fact the most dramatic movements were in "16-19" and "20-24" age groups respectively. Maybe for the 20 somethings some of them are going to school, but 16-19? They are still in high school which means they are not working because they can't find work. Our economy is wreaked.http://www.businessinsider.com/c/536399c969bedd78770e78e6depressionFri, 02 May 2014 09:12:41 -0400http://www.businessinsider.com/c/536399c969bedd78770e78e6
Some of them are most likely young people choosing to forgo working (why work as an orderly changing bed pans and giving sponge baths all day for 8.50 an hour when you can just chill at home ...)
While yet others are older folks who have decided to retire and live off of what ever they've saved up...there's still a lot out money out there among the older generation from back in the day when we had a real middle class
Finally government reports that take labor into account have no way of counting people who choose to work off the books, historically as times get tough more people inevitably decide working tax free isn't a bad option.http://www.businessinsider.com/c/53639787eab8eab0035b9500Here it isFri, 02 May 2014 09:03:03 -0400http://www.businessinsider.com/c/53639787eab8eab0035b9500
The labor force participation rate is the new worst job chart in the world.
Way to go Obozo!http://www.businessinsider.com/c/53639661eab8ea607d5b94ffAskCommentFri, 02 May 2014 08:58:09 -0400http://www.businessinsider.com/c/53639661eab8ea607d5b94ff
what does it mean fewer looking for work? how are they making money?http://www.businessinsider.com/c/5363962cecad0462474453feGolden ReleaseFri, 02 May 2014 08:57:16 -0400http://www.businessinsider.com/c/5363962cecad0462474453fe
Poverty we can believe in!http://www.businessinsider.com/c/5363954869beddfb530e78eaTheFree_LanceFri, 02 May 2014 08:53:28 -0400http://www.businessinsider.com/c/5363954869beddfb530e78ea
Fractions. It is OK. They confuse a lot of people.http://www.businessinsider.com/c/536393eaeab8ea32765b9501OMGFri, 02 May 2014 08:47:38 -0400http://www.businessinsider.com/c/536393eaeab8ea32765b9501
Thanks Obama!